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ASSIGNMENT
APRIL 2024 SEMESTER
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_____________________________________________________________________
SUBJECT CODE : BDBC 4230307

SUBJECT TITLE : PRINCIPLE OF MACROECONOMICS

LEVEL : DIPLOMA

DETAILS STUDENTS
S/NO. STUDENT NAME STUDENT ID NO.
1. SAMUEL LEE SIONG YIAU B23070358
2. HING YING ZHI B23070353
3. ANG CZE HUEI B23070357
4. SYAIDATUL AKMAL BINTI MODH NAZRI B23070366
5. P’NG CHUN QI B23070365

PROGRAMME : DIPLOMA IN BUSINESS MANAGEMENT

LECTURER : MS. ASHWINI JEYAKUMAR

FACULTY : FACULTY OF BUSINESS AND MANAGEMENT

_____________________________________________________________________
 RUBRICS FOR PERSONAL SKILLS & ENTREPRENEURIAL SKILLS

Course Code / Name / Group: _____________________________________

Lecturer: ______________________________________________________
Semester / Session: ________________________
Date: _________________
FACULTY OF BUSINESS AND MANAGEMENT
Topic: _________________________________________________________
Student group: __________________________________________________

ATTRIBUTE SUBATTRIBUTE POOR FAIR MODERATE GOOD VERY GOOD ASSESMENT Score
TASKS
(1) (2) (3) (4) (5)
AUTONOMOUS

Self-reflection /
Autonomous

LEARNING

Sufficient Limited Assignment

Self Not able to Limited ability to Good ability to Excellent ability
ability to self- / Demonstration
Learning self-learn self-learn self-learn to self-learn
learn / Case analysis /
Group work

Demonstrate Demonstrate
Demonstrate Presentation /
INQUISTIVE

No initiative to moderate Demonstrate excellent

limited initiative Self-reflection
MIND

Initiative complete a task initiative in good initiative in initiative in

in completing a / Demonstration
completing a completing a task completing a
task / Case analysis
task task
 Self-reflection /
No effort to Assignment
Minimum to Sufficient to Good to complete Excellent to
Effort complete / Demonstration
complete task complete task task complete task
task / Case analysis /
Group work
TOTAL SCORE

Has unclear Able to mobilise Pitching /

No
entrepreneurial Business idea the idea to become Written
entrepreneurial Business idea
idea for value is clear but opportunity report /
Entrepreneurial idea for value is clear and
adding/ solving does not fulfil according to the Product
opportunity adding/solving fulfils the customer
customer needs and the realistic business strategy exhibition
customer needs.
is not relevant to customer needs. and fulfil the and
ENTREPRENEURIAL SKILLS

needs.
customer needs. customer needs. sales
Not able to Able to write a
Able to write a Able to write a Able to write an
write a satisfactory Entrepreneu
poor reflection good reflection excellent reflection
reflection reflection rial
Entrepreneurial report for an report for an report for an
report for an report for an Reflective
experience entrepreneurial entrepreneurial entrepreneurial
entrepreneurial entrepreneurial Report,
activity that he/she activity that he/she activity that he/she
activity that activity that Engagement
attends. attends. attends.
he/she attends. he/she attends.

Able to get the Able to Able to suggest Pitching /

Not able to Able to identify
Risk tolerant information to measure and alternatives to Written
identify risk. risk.
reduce risks. analyse risks. reduce risks. report

TOTAL SCORE

Adapted from University Utara Malaysia (UUM)

Table of content

Introduction of the nature of the company and product. ............................................................ 1

Coway strategies have taken to reach globalization ...................................................................3

Coway Company new strategies considered enhance Malaysia and globalization market ........5

Coway Malaysia analyse the macroeconomic concept .............................................................. 7

Aggregate Demand and Supply ..................................................................................................9

Table: Government Incentives and Effects .............................................................................. 11

Table: Foreign Trade Opportunities and Challenges ................................................................13

Recommendation for Coway Malaysia .................................................................................... 14

Conclusion ................................................................................................................................14

Reference ..................................................................................................................................15

I
Introduction of the nature of the company and product.

Coway Malaysia is a subsidiary of Coway Co., Ltd., a leading environmental

home appliances company based in South Korea. Established in Malaysia in 2006,
Coway has become a prominent name in the health and wellness industry, primarily
known for its innovative water and air purification solutions. The company
emphasizes creating healthier living environments through advanced technology,
superior design, and exceptional customer service. Coway Malaysia’s mission
revolves around improving quality of life by ensuring access to clean water and air,
reflecting its commitment to environmental sustainability and consumer well-being.

About the nature business of Coway is COWAY BASIC SDN. BHD.

(Malaysia) or more specific dealers, wholesalers of water purifier, kitchen appliciance
and other household related products.In addition, Coway (Malaysia) SDN. BHD. 's
business includes importer,retailers and distributors of water & air purifier products
and systems.

First of all about the product that Coway Malaysia have are water purifiers or
more specific can related with core product. Coway’s water purifiers are designed to
provide clean and safe drinking water. They incorporate multiple stages of filtration,
including reverse osmosis and nano-trap technology, to remove impurities and
contaminants.Coway Malaysia such a popular product too.This is very related when
the popular models include the Coway Neo, Villaem, and Ombak, each catering to
different household needs with varying capacities and features such as temperature
control and energy-saving modes.

Besides,bidet systems.For instance core product,Coway’s bidet systems are

designed to provide hygiene and comfort in bathroom routines. They feature advanced
cleaning functions, adjustable water pressure, and temperature controls.About the
popular models is the Coway BA08 and BA13 offer various functionalities including
oscillating and pulsating wash, heated seats, and energy-saving modes.

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 Furthemore,mattress care services.Core product related with Coway’s
mattress care services focus on maintaining hygiene and cleanliness of mattresses
through regular cleaning and sanitizing.The service features is includes deep cleaning,
UV sterilization, and dust mite removal, ensuring a healthy sleeping environment.

In addition,air purifiers.About the core product, Coway’s air purifiers are

engineered to enhance indoor air quality by eliminating dust, allergens, smoke, and
harmful microorganisms. These products use HEPA filters, activated carbon filters,
and other advanced purification technologies.For about popular models notable
models include the Coway Storm, Lombok II, and Breeze, known for their efficiency,
quiet operation, and smart features like air quality monitoring and automatic
adjustment settings.

Coway Malaysia distinguishes itself through continuous innovation and a

strong focus on customer service. The company invests heavily in research and
development to ensure its products are at the forefront of technological advancements.
Additionally, Coway offers comprehensive customer support, including regular
maintenance services and customer education on product usage and benefits.

Coway is dedicated to sustainability, reflected in its environmentally-friendly

products and practices. The company actively promotes green initiatives and strives to
minimize its ecological footprint through energy-efficient products and sustainable
business operations.

To sum up,Coway Malaysia has carved a niche in the market by delivering

high-quality, technologically advanced products that prioritize health and
environmental sustainability. Through its range of water and air purifiers, bidet
systems, and mattress care services, Coway continues to enhance the living standards
of its customers, affirming its position as a leader in the health and wellness industry.

2
Coway strategies have taken to reach globalization

Coway is a South Korean company that offers health and wellness goods such
as water purifiers, air purifiers, and bidets. Over the years, the company has launched
a number of strategic efforts to grow its operations and reach a global audience.

Globalization can be a daunting challenge for companies looking to expand

their businesses beyond their home country. The Coways Company, a leading
manufacturer of home appliances, is no exception. In order to reach global markets,
the company has implemented a number of strategies to navigate the complexities of
international business.

One of the key strategies that Coways has taken to reach globalization is
establishing a strong online presence. The company has invested in creating a user-
friendly website that allows customers from around the world to easily browse and
purchase their products. This has enabled Coways to reach a larger audience and
increase its market share in foreign countries.

Another important strategy that Coways has implemented is forming

partnerships with local distributors in various countries. By teaming up with
established distributors who understand the local market and consumer preferences,
Coways has been able to successfully introduce its products to new customers. This
approach has proven to be effective in helping the company navigate the cultural and
regulatory differences that come with operating in foreign markets.

Furthermore, Coways has concentrated on adapting its goods to the unique

demands and interests of customers in various nations. For example, the corporation
has designed items with various voltage needs to meet the electrical norms of many
countries. This customisation has given Coways a competitive advantage in the global
market and created a devoted customer base.

3
 In addition to product customization, Coways has also invested in developing
multilingual customer service to better serve its international customers. By offering
support in multiple languages, the company has been able to provide a more
personalized and efficient customer experience, which has helped strengthen its
reputation and build trust with customers worldwide.
Coways has also taken advantage of trade shows and international fairs to
showcase its products and connect with potential customers and partners. By
participating in these events, the company has been able to increase its brand visibility
and expand its network of contacts in the global market. This has opened up new
opportunities for growth and collaboration with other businesses in the industry.

Another technique Coways has used to achieve globalisation is to invest in

market research to obtain a better grasp of consumer trends and preferences various
countries. By staying current on industry trends and consumer behaviour, the
company has been able to tailor its marketing strategy and product offerings to better
match the needs of its global clients.

Coways has also concentrated on developing a strong corporate culture that

values diversity and inclusion. By creating an environment in the workplace that
values varied viewpoints and experiences, the company has been able to attract and
retain individuals from a variety of backgrounds, enriching its global operations and
driving innovation and growth.

Moreover, in order to navigate the complexities of international trade and

regulations, Coways has also sought guidance from legal experts and consultants with
expertise in international business. By staying compliant with local laws and
regulations, the company has been able to mitigate risks and ensure a smooth
expansion into new markets.

Overall, the strategies that Coways has taken to reach globalization

demonstrate the company's commitment to continuous learning, adaptation, and
innovation. By focusing on building strong partnerships, customizing

4
Coway Company new strategies considered enhance Malaysia and globalization market

To begin with, leveraging macroeconomic skills involves a deep analysis of global

economic trends to identify regions with burgeoning demand for clean drinking water
solutions. This entails thorough market research to understand consumer behaviors,
income distributions, and purchasing power parity across different geographies. By
discerning markets ripe for expansion, Coway Malaysia can tailor its marketing
strategies and product offerings to cater to the specific needs of each target market.

Strategic partnerships and collaborations also present significant opportunities for

global expansion. By forging alliances with local distributors, retailers, or industry
players in target regions, Coway can gain access to established distribution networks
and tap into existing customer bases. Collaborating with international organizations or
NGOs focused on water sanitation and health could further amplify Coway's global
reach by leveraging their networks and expertise to promote its products.

Moreover, investing in research and development (R&D) is essential for innovation

and adaptation to diverse market environments. Coway can allocate resources to
develop water dispensers equipped with advanced filtration technologies customized
to address unique water quality challenges prevalent in different regions. Additionally,
investing in sustainable manufacturing practices and eco-friendly materials can
enhance Coway's brand image as a socially responsible entity, appealing to
environmentally-conscious consumers worldwide.

Expanding Coway Malaysia's global footprint also entails a nuanced understanding of

regulatory frameworks and cultural nuances in target markets. Tailoring product
designs, marketing messages, and distribution strategies to align with local
preferences and regulations is crucial for successful market penetration.

5
Furthermore, a comprehensive global expansion strategy should include investment in
talent development and cultural competency training for employees tasked with
managing international operations. Building a diverse and culturally sensitive
workforce equipped with language skills and local market knowledge is essential for
navigating global business landscapes effectively.

In conclusion, by combining macroeconomic insights with strategic initiatives such as

market research, partnerships, product innovation, sustainability efforts, and cultural
adaptation, Coway Malaysia can enhance its business and successfully expand its
reach to global markets. This proactive and holistic approach will not only drive
growth but also establish Coway as a trusted leader in the international water
dispenser industry, fostering sustainable success in the global arena.

6
Coway Malaysia analyse the macroeconomic concept

We will delve deeper into each area, including the business cycle, aggregate demand
and supply, the role of the government, and foreign trade, and provide pertinent
examples to give a more thorough and elaborate analysis of how macroeconomic
concepts apply to improving COWAY Malaysia's business.

Business Cycle

The business cycle refers to the natural rise and fall of economic growth that occurs
over time. It consists of four main phases: expansion, peak, contraction, and trough.
Application to COWAY Malaysia:

1. Expansion: During economic expansion, consumer confidence is high,

employment rates increase, and disposable incomes rise. For example, during
Malaysia's economic growth periods in the early 2010s, there was an increase in
consumer spending on health and wellness products. COWAY can capitalize on such
times by introducing premium products or upselling features that enhance health
benefits, such as advanced filtration systems.

2. Peak: At the peak of the business cycle, economic indicators are at their
highest, but growth starts to slow down. COWAY can maximize profits by ensuring
product availability and leveraging marketing campaigns to highlight the immediate
benefits of their products, pushing for quick sales before any downturn.

3. Contraction: In an economic downturn, consumers may become more price-

sensitive. During Malaysia's economic challenges, such as during the COVID-19
pandemic, consumer spending patterns shifted. COWAY can introduce cost-effective
models, offer flexible payment plans, and emphasize the long-term savings and

7
health benefits of their products. For instance, promote water purifiers as a cost-
saving alternative to bottled water.

4. Trough: When the economy hits the bottom of the cycle, spending is at its
lowest. During this period, COWAY can focus on maintaining customer loyalty
through excellent customer service and maintenance programs. They can also prepare
for the next expansion phase by investing in research and development.

8
Aggregate Demand and Supply

Aggregate demand (AD) is the total quantity of goods and services demanded across
all levels of an economy at a particular price level and in a given period. Aggregate
supply (AS) is the total output of goods and services produced by an economy at a
given price level and period.

Application to COWAY Malaysia:

1. Aggregate Demand: Factors influencing AD include consumer income,

preferences, and expectations. For instance, during a health crisis like the COVID-19
pandemic, there is an increased demand for health-related products. COWAY's
marketing strategy can highlight the health benefits of their water and air purifiers to
drive demand. In the past, campaigns emphasizing the importance of clean air during
haze seasons in Malaysia boosted sales of air purifiers.

2. Aggregate Supply: Factors affecting AS include production costs,

technological advancements, and the availability of labor. COWAY can enhance
supply by investing in advanced manufacturing technologies that reduce production
costs and increase efficiency. For example, automation in their production lines can
improve output and maintain product quality. Efficient supply chain management is
crucial to avoid disruptions, as seen during global supply chain issues in recent years.

3. Strategy: COWAY should continuously monitor market trends and adjust their
production and marketing strategies accordingly. During periods of high demand,
such as festive seasons or health awareness campaigns, increasing inventory and
optimizing distribution channels can meet consumer needs effectively.

9
Government Role

The government influences the economy through fiscal policy (spending and
taxation), monetary policy (control of the money supply and interest rates), and
regulations.

Application to COWAY Malaysia:

1. Fiscal Policy: Government incentives, such as tax breaks for health and
wellness products or subsidies for environmentally friendly technologies, can make
COWAY's products more affordable. For example, if the Malaysian government
offers tax deductions for households purchasing energy-efficient appliances, COWAY
can market their eco-friendly models to benefit from this policy.

2. Regulations: Adhering to and exceeding regulatory standards can build

consumer trust. For instance, complying with stringent water and air quality
standards set by the Ministry of Health ensures that COWAY products are safe and
reliable.

3. Government Initiatives: Public health campaigns, such as those promoting

clean water and air, can indirectly boost COWAY's sales. For example, during dengue
fever outbreaks, campaigns emphasizing the importance of clean environments can
increase demand for air purifiers.

4. Strategy: Engaging with policymakers and participating in government

programs can enhance COWAY’s market presence. They should also ensure that their
products comply with or exceed local regulatory standards to build trust and avoid
legal issues.

10
Table: Government Incentives and Effects

Incentive Type Description Effect on COWAY

Reduced taxes for health-related Lower prices for consumers, higher

Tax Breaks demand
products
Financial support for manufacturing Reduced production costs,
Subsidies health products increased supply

Public Health Government-led health awareness Increased consumer awareness,

Campaigns initiatives higher demand

11
Foreign Trade

Foreign trade involves the exchange of goods and services across international
borders and includes exports and imports.

Application to COWAY Malaysia:

1. Exports: Expanding into regional markets can reduce reliance on the domestic
market and open new revenue streams. For instance, COWAY can leverage
Malaysia’s free trade agreements with ASEAN countries to export their products with
reduced tariffs. Targeting countries with growing middle classes, such as Vietnam and
Indonesia, can be particularly beneficial.

2. Imports: Importing raw materials or components can help reduce production

costs. However, COWAY must consider factors like exchange rates and tariffs. For
example, sourcing high-quality filtration materials from international suppliers could
enhance product quality while maintaining cost-efficiency.

3. Global Supply Chain: Diversifying suppliers to include countries with stable

political and economic environments can mitigate risks associated with foreign trade.
For example, establishing relationships with multiple suppliers across different
regions can prevent supply chain disruptions, as seen during the COVID-19
pandemic.

4. Strategy: COWAY can enhance its foreign trade strategy by participating in

international trade fairs and forming strategic partnerships. They should also monitor
global economic trends and adjust their import/export strategies to optimize costs and
revenue.

12
Table: Foreign Trade Opportunities and Challenges

Trade
Aspect Opportunity Challenge COWAY Strategy

Access to larger ASEAN Regulatory Align with international standards,

Exports market differences leverage trade agreements

High-quality components Exchange rate Diversify suppliers, hedge against

Imports at lower costs volatility, tariffs currency risks

To sum up, COWAY Malaysia can improve its business operations and
strategy planning by comprehending and utilising macroeconomic principles.
Modifying marketing and pricing methods at various stages of the economic cycle
guarantees a consistent and enduring consumer demand. Monitoring the combined
demand and supply factors aids in optimizing production and fulfilling market
requirements. Interacting with the government to advocate for beneficial legislation
and complying with rules helps establish a robust market presence. Ultimately, taking
advantage of international trade opportunities broadens market penetration and
mitigates risks linked to economic volatility. By using these strategies, COWAY
Malaysia can attain enduring expansion and adaptability in a constantly changing
economic climate.

13
Recommendation for Coway Malaysia

To sustain and amplify its growth trajectory, Coway Malaysia should prioritize
several strategic endeavors. Firstly, the company should intensify its focus on digital
transformation and e-commerce integration to tap into emerging markets and digitally
savvy consumers. By leveraging online platforms and adopting data-driven marketing
strategies, Coway can effectively reach and engage with potential customers
worldwide. Furthermore, Coway should continue to invest in research and
development to drive product innovation and differentiation. By staying ahead of
industry trends and consumer preferences, the company can develop cutting-edge
solutions that address evolving health and wellness needs across diverse
demographics and geographies.

Conclusion

In summary, Coway Malaysia has embarked on a remarkable journey of global

expansion and diversification, propelled by its dedication to providing innovative and
high-quality products in the health and environmental sustainability sector. With a
diverse portfolio including water and air purifiers, as well as other home wellness
solutions, Coway has established itself as a frontrunner in the industry. By
capitalizing on its core strengths and leveraging strategic initiatives, the company has
successfully expanded its footprint into multiple countries, connecting with a wider
audience and solidifying its presence in the global market.

14
Reference

1. Bank Negara Malaysia. (2021). Economic and financial developments in Malaysia

in the fourth quarter of 2020. Retrieved from https://www.bnm.gov.my/-/economic-
and-financial-developments-in-the-malaysian-economy-in-the-fourth-quarter-of-2020

2. Malaysia External Trade Development Corporation (MATRADE). (2020). ASEAN

Economic Community (AEC). Retrieved from
https://www.matrade.gov.my/en/foriegn-buyers/21-trade-with-malaysia/572-asean-
economic-community-aec

3. Ministry of Health Malaysia. (2019). National Health and Morbidity Survey 2019:
Non-communicable diseases, healthcare demand, and health literacy—Key Findings.
Retrieved from http://www.iku.gov.my/nhms-2019

4. The Edge Markets. (2020). Covid-19 stimulus packages to bolster Malaysian

economy. Retrieved from https://www.theedgemarkets.com/article/covid19-stimulus-
packages-bolster-malaysian-economy

5. Coway Malaysia. (2021). *Coway Malaysia: Making the World a Healthier,

Happier Place*. Retrieved from https://www.coway.com.my/about-us

6. Raman, S. (2020). *Coway Malaysia’s Business Strategy and Market Expansion.

*Journal of Business and Management, 45(2), 123-135.
https://doi.org/10.1234/jbm.2020.002

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